Italian Referendum Next Test Of Global Populism, But This Time Its Priced In

The next step in the global populism trend could be felt December 4. This is when the Italian referendum to change the constitution, a measure supported by the political establishment, will be voted up or down. A Moody’s report notes that rejecting the referendum could “contribute to global financial market uncertainty, and greatly add to the concerns surrounding the restructuring of the Italian banking sector.”  A Deutsche Bank report, however, only handicaps a 40% chance of the vote succeeding. To various degrees, bond markets are already moving in anticipation of a rejection of the measure, but the real concern is…